A Service Warranty Is Considered to Be a Separate Performance

question 58

True/False

A service warranty is considered to be a separate performance obligation under the contract-based approach for revenue recognition.

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Definitions:

Briefcase

A portable, often flat case used for carrying documents and other papers, traditionally used by business professionals.

Output Technologies

Refers to the devices and methods used to convey processed data and information from a computer to the user, such as monitors, printers, and speakers.

Data

Facts and statistics collected together for reference or analysis.

Information

Data that have been organized so that they have meaning and value to the recipient.